Given that IDP forecasts that the global demand for international higher education in Australia will grow to almost 1 million places by the year 2025, meeting the demand for international education represents a critical challenge for Australian institutions. There is concern as to whether Australia's higher education system has the capacity to meet demand while continuing to maintain a high quality educational experience Based on the outcomes of detailed interviews with institutions across all sectors, this report examines the supply and capacity issues that will determine Australia's ability to meet future demand. The chapters of the report consider: capacity, quality and diversity; trends in the major English-speaking destination countries; supply trends in Australia; strategies for managing demand; typology of responses to forecast demand; and implications. The report analyses the strategies being considered by institutions to increase supply as well as the constraints they are imposing to more effectively manage demand. The potential impact of these strategies on students and institutions and the global, national and local community are examined.